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Q2: (10 points) A professional paper company plans to purchase a new equipment. Three possible vendors offer the estimates given in the table below. There

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Q2: (10 points) A professional paper company plans to purchase a new equipment. Three possible vendors offer the estimates given in the table below. There are no salvage values. We know that the initial cost and annual O\&M cost of Vendor B are given in constant dollars, and all the other values are given in actual dollars in the table. The market interest rate is 20%, and the general inflation rate is estimated to be 8% per year for the next 10 years. (a) (5 points) Using actual-dollar analysis, determine which option should be chosen based on Annual Worth Criterion? Q2: (10 points) A professional paper company plans to purchase a new equipment. Three possible vendors offer the estimates given in the table below. There are no salvage values. We know that the initial cost and annual O\&M cost of Vendor B are given in constant dollars, and all the other values are given in actual dollars in the table. The market interest rate is 20%, and the general inflation rate is estimated to be 8% per year for the next 10 years. (a) (5 points) Using actual-dollar analysis, determine which option should be chosen based on Annual Worth Criterion

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